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The BenefitsLink Newsletter -
Retirement Plans Edition

December 27 and 28, 2000

Today's sponsor is EmployeeBenefitsJobs.com (click on banner for more information)
(Would your company like to sponsor an issue?)

Congress Increases PBGC's Multiemployer Plan Benefits
Excerpt: "The appropriations bill passed by Congress in December 2000 includes a long-needed increase in PBGC's guaranty of multiemployer plan benefits." (Groom Law Group)

Another Question is Answered in the Who's the Employer Q&A Column
5 dentists share a dental suite; one, named John, only works Fridays. There's one employee shared by the dentists, who is a receptionist. She works all 5 working days, full-time. John pays only 5% of the receptionist's salary. Would he have to treat her as a full-time employee, for purposes of John's retirement plan? (BenefitsLink.com)

Another Question is Answered in the ESOP Q&A Column
C Corporation has two types of stock. The first type has special formula dividend rights, no voting but is convertable to common if dividends are not paid ("Preferred Stock"). The second type has all voting rights and may receive dividends if the Preferred Stock has first received its accumulative formula dividends ("Common Stock")Is Common Stock held by the ESOP considered "employer securities" under IRC Section 409(l)(2)? (BenefitsLink.com)

Another Question is Answered in the ESOP Q&A Column
How should you report on the 5500 the value of stock in a leveraged ESOP? Is all stock (both allocated and unallocated shares) considered an asset of the plan? Are the outstanding loans considered a liability of the plan? In the particular plan I am trying to do, the stock has decreased in value. (BenefitsLink.com)

Notice of Intent to Terminate ever required for a defined contribution plan termination?
Interesting discussion on our message boards. Join in! (BenefitsBoards.net)

Retirement Stock Picking With Brokerage Accounts
Excerpt: "Retirement stock picking is a practice that's gaining in popularity. While most investments in retirement plans like 401(k)s and IRAs are invested in mutual funds or other pooled accounts, an increasing number of plans are offering another option." (Greg Hanna, on About.com)

Daewoo Workers Balking at Early Retirement Offer
Excerpt: "Daewoo Motor, which was declared insolvent in November, is having difficulty proceeding with plans to shed production capacity because too few of the company's employees are accepting an early retirement offer, the company said." (New York Times; free registration required)

Another Question is Answered in the Stop, Look & Listen: Railroad Retirement Q&A Column
I'm 37 years old, with over $11,000 in a 401(k) account. I've been offered a job with a railroad. Would I do better in retirement with a Railroad Retirement pension than continuing my 401(k)? (BenefitsLink.com)

(Following also appears in Welfare Plans Edition)

Human Resources IT Roadmap
Excerpt: "Following is an overview of the types of HR applications with the greatest benefit for mid-sized businesses, along with a guide to vendors and service providers (see Appendix) that offer [HR software] tools: ..." (AccountingWeb)

State of the TPA Industry, and Forecast for the Future
Excerpt: "For 21 years, it has become a tradition for me to give a candid report on how the TPA & benefits industry looks, and forecast for the upcoming year(s). My 'expertise' is simply that the SPBA office serves as the central information clearinghouse for the industry (and TPAs themselves tend to be information clearinghouses in their market areas), so my knowledge is simply wisdom from you." (Society of Professional Benefit Administrators)

Companies Quietly Use Mergers, Spinoffs To Cut Worker Benefits
Excerpt: "GE is just one of many major companies that have cut employee benefits in connection with mergers and other deals. Mergers often lead to more visible forms of pain for employees, such as layoffs and plant closings. But when it comes to benefit cuts, workers and retirees often don't even realize they are happening because the language of pension and medical plans can be arcane and some companies tend to shroud benefit reductions in euphemism." (MSNBC.com)

Job Openings Newly Posted or Reposted on EmployeeBenefitsJobs.com

Pension Specialist IIfor American Century Investments
in MO
Pension Specialist Ifor American Century Investments
in MO
Conversion Managerfor Benefit Plan Services, Inc.
in GA
401(k) Administratorfor Warren, Averett, Kimbrough & Marino, LLC
in AL
DC PLAN ADMINISTRATORfor Third Party Administrators, Inc.
in NH
Employee Benefits Consultantfor Employee Benefits Brokerage/Consulting Firm
in NY
Relationship Manager - Total Benefits Outsourcing Large Plan Services (LPS)for Fidelity Investments
in MA

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